Quiet start to the week, but plenty of key data to come

Good morning

It was, as we had expected, a fairly quiet day in the currency markets yesterday, the US holiday giving our friends across the pond a nice long weekend.  Equities were mixed both in Europe and in Asia, the US dollar slightly higher across the board as the market comes round to thinking that perhaps US rate cut expectations for this year are a little overdone.

AUD has lost a little ground ahead of tonights Aussie Q2 GDP release.  There is some thinking that lower iron ore prices are responsible for the AUD weakness, iron ore futures slipped over 4% in Asian trade.  AUD also under pressure from AUDJPY selling which took the pair down from near 100 to 98.40.  AUDNZD broadly unchanged around 1.0885 as NZD seems to track its neighbour.  GBPAUD now 1.9470, GBPNZD 2.1185.

Highlight for today will be the latest US ISM PMI numbers this afternoon, while ECBs Nagel will be speaking after the London close.  Aussie GDP overnight is expected to come in around the 1% mark.  BoEs Breeden speaks this afternoon, as far as I recall she is pretty middle of the road so I don’t expect anything too out of the ordinary from her.

In other news, Turkey inflation came in just below 52% this morning, having been as high as almost 75% in May this year.   Turkey as officially asked to join the BRICS group of nations, although I’m not sure what they would then call the group, they could really do with another member with a vowel at the start of the country name to make it easier to find a new acronym. 

I have little else to offer this morning, I always struggle on my return from holiday, so will leave you with this reasonably short report for now.   

Have a great day. 

-  13.45 BoEs Breeden speaks

-  14.30 CAD S&P manufacturing PMI

-  15.00 US manufacturing ISM

-  17.45 ECBs Nagel speaks

-  02.30 AUS GDP

-  02.45 China caixin services PMI